Regulatory Alerts2018-11-01
IBA Circular No. 2 of 2018 - Loan Loss Provisions and Reserves
The Central Bank of Belize issued IBA Circular No. 2 of 2018 to prescribe procedures for the establishment and maintenance of loan loss provisions and reserves for licensed banks. The regulation mandates specific provision rates of 20%, 50%, or 100% for substandard, doubtful, and loss assets respectively, alongside a general reserve requirement of 1% for non-adversely classified loans. It further stipulates quarterly evaluation frequencies, detailed timelines for writing off unsecured and mortgage-secured non-performing loans, and rules for recording recoveries.
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